EXERCISE $89$

Analyzing

Return on Assets

Two auto dealers, Legend Auto Sales and Reliable Auto Sales, compete in the same area. Both

purchase autos for $$10,000$ each and sell them for $$12,000$ each. Both maintain $10$ cars on the lot at all times. A local basketball legend owns Legend Auto Sales. As a result, Legend sells $100$ cars each year, while Reliable sells only $50$ cars each year. The dealerships have no other revenues or expenses.

Required: